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Market and costs (vers. 2014)
 

Market and costs (vers. 2014)

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Target Market, demographics and psychographics characteristics, B2B, B2C, Direct and Indirect Costs, Cash and Accrual Basis Accounting

Target Market, demographics and psychographics characteristics, B2B, B2C, Direct and Indirect Costs, Cash and Accrual Basis Accounting

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    Market and costs (vers. 2014) Market and costs (vers. 2014) Presentation Transcript

    • Market and costs
 IED Lesson 4/2014 Frieda Brioschi / Emma Tracanella frieda.brioschi@gmail.com / emma.tracanella@gmail.com
    • 4. Market and Costs Course program 1. Italian Startups 2. Set up a startup in Italy 3. I've got an idea. And now? 4. Market and costs 2
    • 4. Market and Costs Today's table of content 1. Target Market 2. Direct and Indirect Costs 3. Cash and Accrual Basis Accounting 4. Perceived Value 3
    • 4. Market and Costs I've got an idea. And now? Past slides available on Slideshare @ubifrieda: https://www.slideshare.net/ubifrieda/ 4
    • 4. Market and Costs I've got an idea. And now?: quick recap During last lesson we discussed: • Intellectual property • General design principles (no ToDo list available..) • Definition of a project (clear goal that must be reached in a fixed time using available resources) • Product life cycle (planning, analysis, design, implementation, maintenance... maturity and decline or evolutionary maintenance and a new cycle) 5
    • 4. Market and Costs I've got an idea. And now?: quick recap We detailed: • Some basics useful from concept to company • How to formalize and write my project • Who can help me (Kublai, business incubators, seed accelerators) 6
    • 4. Market and Costs Target market 7
    • 4. Market and Costs4. Market and Costs http://sbinfocanada.about.com/cs/marketing/a/targetmarket.htm Target market • Who are your customers? Who will buy your product? • People purchase products or services for three basic reasons: • To satisfy basic needs. • To solve problems. • To make themselves feel good. 8
    • 4. Market and Costs4. Market and Costs http://www.successdesigns.net/articles/entry/how-to-define-your-target-market/ Definition 1. Look at your current customer base 2. Check out your competition 3. Analyze your product/service 4. Choose specific demographics to target 5. Consider the psychographics of your target 6. Evaluate your decision 9
    • 4. Market and Costs4. Market and Costs http://sbinfocanada.about.com/cs/marketing/a/targetmarket_2.htm Segmentation by demographics • Age: children, teens, young, middle, elderly • Location • Gender: male, female • Education: high school, college, university • Income: low, medium, high • Marital status: single, married, divorced • Ethnic and/or religious background • Occupation • Family life cycle: newly married, married for 10 – 20 years, with or without children. 10
    • 4. Market and Costs4. Market and Costs http://sbinfocanada.about.com/cs/marketing/a/targetmarket_2.htm Segmentation by psychographics • Personality • Values • Lifestyle: conservative, exciting, trendy, economical • Social class: lower, middle, upper • Opinion: easily led or opinionated • Activities and interests: sports, physical fitness, shopping, books • Attitudes and beliefs: environmentalist, security conscious. • Behaviour 11
    • 4. Market and Costs4. Market and Costs Challenges to exporting • import barriers • import quotas and currency restrictions • taxation • health regulations • 'CE marking' for exports to most European nations • safety regulations • environmental standards • accreditation issues • how you will be paid for your exported products or services • legal agreements. 12 http://www.nzte.govt.nz/en/export/starting-to-export/identify-your-target-market/
    • 4. Market and Costs4. Market and Costs Country specific constraints • tariffs or duties • industry regulations • political instability • business laws • intellectual property protection • product to market logistics • quarantine and regulatory requirements. 13 http://www.nzte.govt.nz/en/export/starting-to-export/identify-your-target-market/
    • 4. Market and Costs4. Market and Costs Research and analysis • target audience • SWOT • marketing goals • positioning • pricing • distribution 14 • marketing strategies • communication strategy • media plan • schedule • budget • tracking and evaluation
    • 4. Market and Costs4. Market and Costs SWOT/1 Strengths could include: • personal and flexible customer service • special features or benefits that your product offers • specialist knowledge or skills ! Weaknesses could include: • limited financial resources • lack of an established reputation • inefficient accounting systems 15 http://www.infoentrepreneurs.org/en/guides/create-your-marketing-strategy/
    • 4. Market and Costs4. Market and Costs SWOT/2 Opportunities could include: • increased demand from a particular market sector • using the Internet to reach new markets • new technologies that allow you to improve product quality ! Threats could include: • the emergence of a new competitor • more sophisticated, attractive or cheaper versions of your product or service • new legislation increasing your costs • a downturn in the economy, reducing overall demand 16 http://www.infoentrepreneurs.org/en/guides/create-your-marketing-strategy/
    • 4. Market and Costs4. Market and Costs Here’s the problem with target markets: They’re too big. 17
    • 4. Market and Costs4. Market and Costs http://www.inc.com/guides/201104/how-to-narrow-your-target-market.html Narrowing your target market "Companies that try to be all things to all customers are sure to fail.” • The Dangers of Being Unfocused • Become an Expert in one Area (Starbucks!) • Do the Market Research • Tweak your Marketing 18
    • 4. Market and Costs http://www.educationbusinessblog.com/2007/07/target_market_selection_1.html?p=42 Matter of balancing 19
    • 4. Market and Costs Kinds B2B B2C http://plantostart.com/how-to-define-target-market-product/ 20
    • 4. Market and Costs4. Market and Costs B2B Your business model is to make a product or service and charge other companies for using it. The advantage of this model is that companies have money and they are willing to spend it on a product/service, which improves their daily operations, helps them sell more or communicate better. Google, Cisco, MySQL and others are using this model. 21 http://thelaukaitis.wordpress.com/2013/04/18/starting-your-business-2-business-model-and-target-market/
    • 4. Market and Costs4. Market and Costs B2C Your business model is to make a product or service and charge consumers for using it. Even though most people think this is a very profitable model, most often companies need to have at least hundreds of thousands of users in order to earn enough money to maintain and expand the business. This model is being used by Starbucks, McDonald’s, Amazon and others. 22 http://thelaukaitis.wordpress.com/2013/04/18/starting-your-business-2-business-model-and-target-market/
    • 4. Market and Costs All you need to know about costs 23
    • 4. Market and Costs Costs In production, research, retail, and accounting, a cost is the value of money that has been used up to produce something, and hence is not available for use anymore. Two kind of costs: • Direct costs • Indirect costs 24
    • 4. Market and Costs Direct costs Costs that can be identified specifically with a particular project or activity, or that can be directly assigned to them with a high degree of accuracy. Direct costs generally includes: • Salary and wages • Material, supplies and equipment purchased directly for the specific project • Communication and travels costs 25
    • 4. Market and Costs Indirect costs Costs that are not classified as direct Indirect costs generally includes: • Salary of administrative staff providing normal support activities • Office supplies, computers • Local telephone calls • Memberships => Overhead 26
    • 4. Market and Costs Bykes Direct costs: • Metals • Wages for assembly ! Indirect costs: • Abrasive, glue, pink • Rent • Insurance 27
    • 4. Market and Costs Actual cost of doing business Before you can price a product or a service, you need to know your cost to produce it. 28
    • 4. Market and Costs Photographer ! • How much charge a photo? • Minimum fee? • No costs? ! A useful tool: the Cost of Business calculator. It list annual expenses, but it depends on your inputs which can be hard to estimate. 29
    • 4. Market and Costs Cost of doing business calculator/1 ! Expenses • Office and/or studio (rent, mortgage payments, taxes, insurances, home maintenance, …) • Phone (cell and/or landline and faxes) – remember to include also the cost of the phone itself • Photo/Video/Audio Equipment and Accessories • Equipment services and Repairs 30 https://nppa.org/calculator
    • 4. Market and Costs Cost of doing business calculator/2 • Computer(s) (harware and software) • Broadband internet • Web hosting/Portal services • Vehicle Expenses (Lease, Insurance, Maintenance) • Office supplies and Furnitures • Postage and Shipping 31 https://nppa.org/calculator
    • 4. Market and Costs Cost of doing business calculator/3 • Professional Development • Advertising and Promotion • Subsciption and Dues • Equipment and Business Insurance • Health Insurance/Deductibles/Copays • Legal and Accounting Services 32 https://nppa.org/calculator
    • 4. Market and Costs Cost of doing business calculator/4 • Taxes and Licenses (Business and Self-Employment) • Office Assistance (Payroll, Answering Service, Intern, etc.) • Utilities • Travel and Entertainment 33 https://nppa.org/calculator
    • 4. Market and Costs Cost of doing business calculator/5 • Income factors • Desired Annual Salary • Non-assigment Income • Number of Days You Can Bill Per Year 34 https://nppa.org/calculator
    • 4. Market and Costs Cost of doing business calculator /6 https://nppa.org/calculator 35
    • 4. Market and Costs Accounting • The difference between cash and accrual basis accounting has to do with the time frame in which revenues and expenses are recorded and reported. ! • Cash basis accounting will suffice if your business is a simple one. However, the accrual basis will give a more accurate picture of the results of business operations. 36
    • 4. Market and Costs Cash Accounting • Revenues are reported on the income statement in the period in which the cash is received from customers. • Expenses are reported on the income statement when the cash is paid out. • Focus on the amount of cash in bank and on making sure all bills are paid. 37
    • 4. Market and Costs Cash Accounting https://www.youtube.com/watch?v=FfdpupKByiU 38
    • 4. Market and Costs Accrual Basis Accounting • Revenues are reported on the income statement when they are earned - which often occurs before the cash is received from the customers. • Expenses are reported on the income statement in the period when they occur or when they expire - which is often in a period different from when the payment is made. • Provides more information about the business and gives meaningfull financial reports. 39
    • 4. Market and Costs Accrual Basis Accounting ! https://www.youtube.com/watch?v=NNhyZFHAzaA 40
    • 4. Market and Costs Cash vs Accrual Basis Accounting ! ! https://www.youtube.com/watch?v=LU_6amWC6H8 41
    • 4. Market and Costs Next week Business model. ! ! 42